Houston residents who have created their estate plans might think they have their ducks lined up, but simply creating an estate plan is not the end of the matter. It is very important to periodically review the plan to ensure that it is up to date. A lot might have changed since a trust was created or beneficiaries named, and the estate planning documents may no longer be appropriate. Things change, and so should trusts.
Posts tagged "Estate Planning"
Many Houston residents may have sent off their children to college this fall and in between wondering how quickly time passes and how they are going to change the extra bedroom into a gym, they neglect to think about essential updates to their estate plan. When a child is born, parents likely update their estate plans to nominate a guardian for them in case something happened to the parents. Now that the children are older, there are a new set of issues an estate plan should consider, including how to continue financially supporting a child without letting other people take advantage of them.
Texas residents may be aware that a new tax law was signed into law at the end of 2017 and how it may affects aspects of financial planning but they may not be aware they it can play a big role in estate planning. The tax reform legislation substantially raised the estate tax exemption over previous limits, and this can impact gifting and estate planning until 2025, when the law is set to expire, and afterwards as well.
Texans who downplay the importance of having an estate plan might come up with various justifications for their position. They might think they do not have significant assets to make it necessary to craft a will, a trust or other estate planning device. Those with major assets could simply put it off under the mistaken belief that it is something that can wait for a later time. Regardless of the financial standing, it is important to have an estate plan that suits a person's needs. This frequently comes to the forefront when a celebrity dies and it is later found that he or she did not have a will as is the case with the late singer Aretha Franklin.
Texans who have concerns about the type of medical care they will receive should they become ill enough that artificial means are necessary to keep them alive will want to think about a living will. A living will is a key part of comprehensive estate planning and should not be ignored. The desire of the person is paramount with a living will. Many people do not want to be subject to medical intervention or be kept alive with artificial means. Therefore, it is important to remember important points about Texas law for living wills.
Texans who are without a vast portfolio and do not own significant amounts of property will often shun the basics when protecting themselves with an estate plan. There might be a perception that an estate plan is only necessary for those who own a lot. This is not the case. The reality is that people who function under the belief that they own so little that wills and other estate planning devices are unnecessary do have many items that need to be addressed by formulating at least a basic document. Still, it is important to understand what happens when there is no will or other estate planning document to serve as a guideline after death.
For Texans of any age, having an organized estate plan is a wise step. The need to formulate estate planning documents can be expedited by the unforeseen. One specific and unexpected event is a poor medical diagnosis.
Even the most vigilant Texans who make certain every area of their lives are well-organized might forget about estate planning. There are many reasons why this might be the case, but it is always a mistake. Having an estate plan that suits the individual needs is not just beneficial to loved ones; it can make certain that all the areas of one's life are covered for all eventualities, foreseen and unforeseen. With estate planning, there are several reasons that are often presented as to why people fail to take these steps. Knowing them and avoiding them is key.
Not everyone in Texas has a family or friends they would like to leave their assets to after their death. These people may think that an estate plan is unnecessary. This is a fundamental mistake that should be rectified as soon as possible because even single people should have an estate plan.
There are many reasons why a Texan would need to consider the importance of drafting estate planning documents. One motivation could be that they have significant assets they are concerned about. Another reason might be that they own a business that they would like to remain in the family. Some other common incentives are because the individual is thinking about how they can use their assets to benefit their heirs or are possibly worried about what will happen to them if they become ill and incapacitated. In those situations, a durable power of attorney can be useful.